Jeju Air has been granted approval by the US Department of Transportation (DoT) to operate passenger and freight services from South Korea to the US (Pacific Daily News, 13-Jun-2012). The airline plans to commence Busan-Guam and Seoul Incheon-Guam services in Oct-2012 using Boeing 737-800 equipment, pending US Customs and Border Protection and Guam Customs and Quarantine permits.
Jeju Air granted approval to operate US services
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Korea's Eastar Jet LCC joins U-FLY LCC alliance to strengthen position in China and Southeast Asia
Korean LCC Eastar Jet has become the fifth member of the U-FLY LCC Alliance, established in Jan-2016. Eastar Jet also becomes the first member not affiliated with the HNA Group or based in Greater China. Eastar Jet's membership comes after its larger competitor Jeju Air became a founding member of the competing LCC Value Alliance in May-2016.
For now both alliances are more like commercial partnerships, where new technology (Air Black Box, compatible with IATA's New Distribution Capability) enables the member airlines to cross-sell not just seats, but also the critical components of varied ancillary revenue. Both alliances have small costs – and thus low risk – while the U-FLY Alliance is unique in being a platform for the ever-expansive HNA Group to foster synergies among companies.
Although it is Korea's smallest major LCC, Eastar Jet has the largest LCC operation into mainland China. Eastar expects to benefit from potential cooperation through U-FLY; it will allow it to reach more inland and western Chinese points that are too far or thin for its network, but are where U-FLY's three mainland members are based.
Hawaiian Airlines: enjoying a revenue premium while preparing for crucial new network development
During the first few years of the decade Hawaiian Airlines undertook a massive network expansion that included the addition of more than 10 long haul routes. With a few minor expansions Hawaiian efforts have been successful, reflected in the airline’s more balanced network that features some of Hawaii’s largest origin markets.
Hawaiian begins taking the next steps to fill gaps within its network in 2017. During the year the airline starts accepting deliveries of Airbus A321neos that allow it to serve smaller secondary markets in North America without degrading the company’s cost performance – which is proving to be a challenge in the short term. Hawaiian believes the aircraft is uniquely qualified to handle some of the operating conditions from the region’s islands to the US mainland.
Hawaiian embarks on 2017 enjoying a significant revenue premium above the US industry and the airline continues to strengthen its revenue management techniques to maximise product offerings, including extra legroom seating and new lie-flat premium seating on its Airbus widebody aircraft. The company is forecasting modest capacity growth for the year of 2% to 5%, the bulk of which is driven by new services to Tokyo launched in 2016.